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The 4-5-4 Calendar serves as a voluntary guide for the retail industry and ensures sales comparability between years by dividing the year into months based on a 4 weeks – 5 weeks – 4 weeks format.
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This calendar became problematic as Saturdays and Sundays became an increasingly large percentage of sales, since the number of weekends in a month varied year to year.
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Dividing the retail calendar into 52 weeks of seven days each, or 364 days, leaves an extra day each year to be accounted for.
As a result, every five to six years a week is added to the fiscal calendar. The 4-5-4 Calendar, which is widely followed by retailers today, was derived in the 1930’s during an informal inter-industry discussion.
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